Apple makes changes to the App Store, gives developers a larger share of the take

Yesterday, Apple announced some changes to the App Store that will allow developers to advertise their apps in search results. Currently, with 1.9 million apps in the App Store and 14,000 new ones added each week, it is hard for a particular app to stand out. Therefore, Apple is doing the right thing in allowing developers to post these search result ads. Otherwise, it would be extremely hard for both new and older apps to get noticed in this crowd.

The top 1% of apps accounted for 94% of the App Store's estimated revenue of $1.43 billion in the first quarter. According to app analytical firm Sensor Tower, that percentage has risen from the 80% of App Store revenue produced by the top 1% of apps back in July 2012. That means that iOS users are having a hard time discovering apps outside of the most popular ones.

During the conference call for Apple's fiscal second quarter earnings, CEO Tim Cook said that for the period, App Store revenues were up 35% year-over-year. With iDevice sales beginning to slow down, Apple is counting on the App Store to provide the company with much needed revenue boosts.

In addition, while Apple will still take its 30% cut of paid app revenue, in the case of a customer who has maintained a subscription with a developer for longer than a year, Apple's take will drop to 15%. And in a big change, Apple will now allow all categories of apps to sell subscriptions, including games. Previously, subscriptions could be offered only by news apps, apps related to cloud services, dating apps, and  audio/video streaming apps.

Developers still want some other changes such as the right to offer free app trials, and to include paid updates. Phil Schiller, who has been running the App Store since December, says that Apple looks at everything. The executive says that the company is making decisions on what changes produce a better experience for Apple customers.

source: Reuters via TheVerge

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23 Comments

1. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

Apple is feeling the heat!

3. Mxyzptlk unregistered

Don't be ignorant.

5. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

How can i be ignorant? Fanboys can never take criticism!

10. AlikMalix unregistered

mxy, he's right though, Apple is starting to feel the pinch that others have been experiencing for the past year. Apple isn't ammune to the saturated market. I have made many posts, hoping for Apple to drop in customer interest. Apple can do wonderful things when they're "feeling the heat"... So, on this, I agree with SIGPRO.

15. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

Competition is heating up, and it's good for us consumers, why bash the guy? You should read AlikMalix's comment.

16. tedkord

Posts: 17358; Member since: Jun 17, 2009

It's what he does. When someone says something that could possibly be disparaging of Apple, he swoops in to save the day. In his eyes, Apple can do no wrong.

18. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

That is what I really dislike about him, he will defend Apple even if they open a portal to the demon world and unleash all hell.

19. AlikMalix unregistered

(reply to NoToFanboys post #18) #...innovation!

26. Mxyzptlk unregistered

Pot calling the kettle black? You do the same thing with Samsung. So everything you said can be applied to you.

28. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

LOL. You're delusional, I defend ANY company when BS is thrown at them, even Apple.

27. Mxyzptlk unregistered

I read his comment and it's far more logical than anything you can say.

29. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

Which is also far more logical than anything you can say.

2. Mxyzptlk unregistered

Good job Apple. Prove the haters wrong.

8. Barney_stinson

Posts: 672; Member since: May 30, 2016

App saturation is hurting new developers !! Its time to think lovely developers , make a W10 app and you will be able to get your revenue !!!

11. AlikMalix unregistered

+1.... (but you didnt have to post it twice)...

9. Barney_stinson

Posts: 672; Member since: May 30, 2016

App saturation is hurting new developers !! Its time to think lovely developers , make a W10 app and you will be able to get your revenue !!!

12. Scott93274

Posts: 6038; Member since: Aug 06, 2013

This is great for developers as they already make more money on Apple's platform. I think that maybe this decision was made to offset the slowing app downloads that were reported earlier this week.

14. nebula

Posts: 1009; Member since: Feb 20, 2015

It is second time i got that intrusive pop up adware that only can be shut down by closing app, it knows what phone i use , says my phone got virus. It happened just after I cleared my chrome app cash on androind and PA was first site I visited and while reading this first article. Does that mean i have it on my phone or its external?

21. ibend

Posts: 6747; Member since: Sep 30, 2014

its just some normal ads

23. AlikMalix unregistered

maybe that's only normal for Android users... but iOS has controls in place to prevent annoying stuff like this...

25. nebula

Posts: 1009; Member since: Feb 20, 2015

It's not a banner some sort of but intrusive adware because you have to install some program. It takes over your phone in a way, to point. My mother out of not knowing once installed some crap like that lucky I was around so I did hard reset straight away.

30. techman82

Posts: 41; Member since: Oct 08, 2015

The greed is getting worse and worse, with this new change all apps and games will change to a subscription model, for updates as well, all sites that have posted bout this have played it down like as if it's a good thing for customers, (looking after there own)I can tell you one thing I won't be subscribing to no app or game that's not a service, that's for sure, can't believe this! Should be called freemium 2.0 not apple store 2.0, was thinking of changing to Android until i read there doing same thing, i can tell you that this won't work and when it really gets out, there will be a backlash, no 1 wants to give up to a thousand euro for a phone and then start subscribing to games and apps, no one i know would do it!

31. hwb01

Posts: 355; Member since: Apr 17, 2014

We must get rid of the 1%!!

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